North Korea nerves push stocks to worst week since November

"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY. "Comments that can lead us to a war".

The sell-off is likely to extend into the European session, with financial spread-better CMC Markets expecting Germany's DAX and France's CAC 40 to open down about 0.7% each and Britain's FTSE 100 to start 0.55% lower.

Japanese markets were closed for a holiday but the tense mood dragged Asian shares lower and an MSCI index of stocks across the globe was on track to post its largest weekly drop since the week before Donald Trump won the US presidential election in November.

U.S. stock futures slipped while U.S. Treasuries, gold and the safe-haven yen rose in early Asian trading on Wednesday after tensions on the Korean peninsula escalated with Pyongyang's warning that it is "carefully examining" plans for a missile strike on the U.S. Pacific territory of Guam.

"We would now be careful with a whiff of risk aversion in the air and, by extension, also stay away from shorts in the rates market", RBC's global macro strategist Peter Schaffrik said.

"It's just a classic risk-off day", said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in NY.

Although Japan could be in the front line of any clash with North Korea, the yen is benefitting because Japan is the world's biggest creditor nation and Japanese investors tend to repatriate funds in times of stress, attracting other flows.

The rhetoric between the US and North Korea has continued to heat up, leading traders to look to safe havens such as gold and treasuries. A gauge of volatility on the S&P 500, the VIX hit its highest reading for over a month.

Australian shares fell to near three-week lows in a broad-based selloff.

The CBOE Volatility index, the most widely followed barometer of expected near-term USA stock market volatility, rose the most in about 12 weeks.

In currencies, the yen strengthened 0.64 percent versus the greenback at 109.37 per dollar.

The dollar index, which measures against a basket of currencies, fell 0.05 percent.

European stocks have fallen for a third day on Friday and look headed for their worst week since early November previous year, as US President Donald Trump's rhetoric on North Korea over the past few days made investors risk averse.

RELATED NEWS

USA fighter jet crash lands at Bahrain International Airport
Bahrain's Transportation and Telecommunications Ministry identified the fighter jet as a "U.S. military aircraft" in a statement. The tiny island kingdom is now home to a USA naval support facility and holds some 8,000 U.S. troops. 8/13/2017

Dow slips 100 points as tensions with N Korea escalate
European markets registered their worst weekly loss this year on Friday amid rising tensions between USA and North Korea . CURRENCIES: The dollar slipped to 109.05 yen from 109.20 while the euro weakened to $1.1763 from $1.1773. 8/13/2017

Hernandez keen for Old Trafford return
The 29-year-old Mexican, known as "Chicharito" (Little Pea), was a crowd favourite during his five years at United, scoring 59 goals for the club and playing a part in two league title successes. 8/13/2017

Residents can vote on Iowa license plate designs
The third option is called "great wide open" and includes a blue stripe and some rolling hills and shrubbery. The department also announced the public would get a chance to vote on the replacement plate choices. 8/13/2017

Cowboys Elliott banned six games
The 22-year-old Elliott was suspended after a number of alleged domestic violence incidents involving his former girlfriend. Since news of the suspension broke Friday, Elliott and his representatives have vowed to appeal the NFL's ruling. 8/13/2017

Janta Dal (United) To Decide On Joining NDA On August 19
Now, that Sharad has been removed the party's leader post in Rajya Sabha, he will have to sit in the back benches. Party leader KC Tyagi said Ansari has been "suspended from the parliamentary party" for attending the meeting. 8/13/2017

United in talks with Ibrahimovic about striker staying
Mourinho accepted, after losing his third Super Cup, that Real Madrid had been the better team in the Philip II Arena. NO MORE PITCH DESIGNSThe Premier League has banned pitch patterns and designs for the 2017/18 campaign. 8/13/2017